Saving Behavior of Vegetable Farming Households in Tayabas City, Quezon, 2023

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaymee A. Cabangbang

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

The study assessed the saving behavior of vegetable farming households in Tayabas City, Quezon. Specifically, the study: (1) described the socio-economic characteristics, farm characteristics and operation, reasons for saving, and availability and accessibility of financial institutions of the vegetable farming households; (2) determined the vegetable farm profitability of the vegetable farming households; (3) analyzed the ability, willingness, and opportunity to save of the vegetable farming households; (4) determined the factors affecting the saving behavior of the vegetable farming households; and (5) recommended possible actions that can be conducted by local government, financial institutions, and other stakeholders based on the identified results.

A total of 74 respondents were distributed and randomly selected in the municipality specifically, vegetable farming households cultivating fruit vegetable production. Both primary and secondary data were utilized in the study. Descriptive analysis was used to describe the socio-economic characteristics, farm characteristics and operation, reasons for saving, availability and accessibility of financial institution, and vegetable farm profitability. The Likert Scale was used to measure levels of confidence in financial management and level of agreement in opinions on savings. Costs and returns analysis was conducted to measure the farm net income, while the Gini-Simpson index was used to analyze the income allocation diversity index based on 14 categories of expenditure. The multiple regression analysis was employed to assess the significance of selected ability and opportunity to save. Furthermore, binary logistic regression was used to assess the effects of behavioral characteristics on the willingness to save of vegetable farming households.

A multiple regression analysis results showed income level, dependency ratio, income allocation diversity index, and farm size as positive and significant factors affecting the ability to save of vegetable farming households. While distance of household from formal financial institution was negative and a significant factor affecting opportunity to save. Binary logistic regression results showed that only the presence of saving goals positively affected willingness to save. This study also found out that vegetable farming households were only able to save 2.68 percent of their income, 94.59 percent were willing to save, and opportunity to save was present across in the municipality, and 74.32 percent of the vegetable farming households had an informal savings. Since, majority of vegetable farming households are willing to save, majority can save a portion of their income on annual basis, and financial institutions are readily available and accessible to vegetable farming households, it was concluded that the vegetable farming households in Tayabas City, Quezon have a favorable saving behavior.

Based on the significant results, it was recommended to improve the saving behavior of vegetable farming households in the aspect of ability, willingness, and opportunity to save through increasing household income level (e.g., farm diversification and food value-addition business), improving rhe income allocation diversity and saving goals (e.g, financial literacy, management trainings, and seminars), and enhance access on the formal financial institution.

Language

English

LC Subject

Vegetable trade, Saving and investment

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 S25

Notes

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Document Type

Thesis

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